2 Drug Stocks Near Key Technical Levels After ASCO
Biotech stocks Puma Biotechnology Inc (NASDAQ:PBYI) and TG Therapeutics Inc (NASDAQ:TGTX) have had big years, both sporting 2017 gains of more than 180%. Like sector peer Loxo Oncology Inc (NASDAQ:LOXO), PBYI and TGTX are making waves again today, too, following this weekend's American Society of Clinical Oncology (ASCO) annual event. Plus, both stocks are testing key technical levels.
PBYI Stock Could Have More Upside
Puma stock was last seen 3.7% higher at $84.95, and earlier hit an annual high of $92, after the company presented upbeat data on its cancer drug, neratinib. This has PBYI shares comfortably above the $80-$81 region, which is not only home to their recent highs, but also represents a 23.6% Fibonacci retracement of a decline from the 2014 peak to the 2016 bottom.
Elsewhere, analysts are mostly bullish on PBYI stock, with four out of five rating it a "strong buy." Plus, even with their recent surge, the shares remain below their average 12-month price target of $89.43. Not everyone's bullish, however. About 8.3 million shares of Puma Biotechnology are controlled by short sellers, which is equal to seven times the stock's average daily trading pace. More gains could ensue if these bears start to throw in the towel.
The Level to Watch for TGTX Stock
Meanwhile, TG Therapeutics stock jumped out of the gate, but was last seen 5.8% lower at $13.05, as investors consider an update on a combination therapy using its leukemia drug. In fact, the shares earlier hit an annual high of $15.35. The $13.80 area could now be one to watch, as this represents a 61.8% Fibonacci retracement of TGTX's rally from early 2014 to its 2015 peak.
Like PBYI, analysts are very bullish on TG Therapeutics, with all seven covering brokerages rating it a "strong buy." Moreover, the shares' consensus 12-month price target stands all the way up at $24.14 -- territory not charted since early 2012. But short interest is extremely elevated, as it would take these bears 12 sessions to cover their positions, based on average daily volumes.